Skip to content

Explanation of Article 666

Explanation of Article 666

The article addresses three cases in which preemption is forfeited, and the causes of preemption forfeiture, as previously mentioned, cancel the preemption after it has been established; unlike the impediments to preemption, which prevent the establishment of preemption from the outset. The forfeitures mentioned in the article are:

The first case: The relinquishment by the preemptor of his right to preemption, whether this relinquishment is explicit or implicit, such as being a witness or mediator in the sale contract, and whether the relinquishment occurs after or before the sale.

The second case: If the preemptor does not inform the seller and the buyer of his desire to exercise preemption within ten days from the date of the notice directed to him by the seller or buyer requesting him to express his desire, as the system provides the seller and buyer with a means to ensure the stability of the contract and terminate the preemptor's right to exercise preemption, by having the seller or buyer notify the preemptor to ascertain his desire to exercise preemption or not.

The article clarified that the notice directed by the seller or buyer to the preemptor must include sufficient information about the buyer, the sale, the price, and the terms of the contract; so that the preemptor is sufficiently informed about the transaction to determine his desire to exercise preemption or not. If the notice includes the required information and ten days pass from the date of the notice without the preemptor informing the seller and buyer of his desire to exercise preemption, his right to preemption is forfeited, and his right is also forfeited if he informs one of them without the other.

If the seller or buyer does not direct a notice to the preemptor, or directs a notice that does not meet the required information, the notice is void; thus, this period does not apply to the preemptor.

Instead of directing a notice of his desire for preemption to the seller and buyer, the preemptor can file a preemption lawsuit directly; however, this must be done within ten days from the date of the notice directed to him for the lawsuit to serve as a notice of desire. If the buyer concedes at the start of the preemption lawsuit proceedings, the preemptor bears the lawsuit expenses if it is found that he hastened in filing it and it was unnecessary.

The article did not require a specific form for the notice directed by the seller or buyer to the preemptor, nor for the notice of desire directed by the preemptor to them; it can be in writing or verbally; and the burden of proof of issuing the notice or the desire lies with the one who issues it.

The third case: If the preemptor does not file a preemption lawsuit within thirty days from the date of the notice directed to the seller and buyer; if the preemptor informed the seller and buyer of his desire to exercise preemption within the specified period in the second case and his request was not granted, the preemptor must file a preemption lawsuit within thirty days from the date of this notice; otherwise, his right to preemption is forfeited.

The periods included in this article are forfeiture periods, not limitation periods; thus, the provisions of limitation regarding suspension or interruption do not apply to them.

Article 666

The right of first refusal shall be forfeited in the following cases:

a) If the holder of the right of first refusal explicitly or implicitly relinquishes such right, even if such relinquishment is made prior to the sale.

b) If the holder of the right of first refusal fails to notify the seller and the buyer of his desire to exercise such right within 10 days from the date of being notified by either the seller or the buyer regarding the exercise of such right, provided that such notification includes sufficient information about the buyer, the sold property, the price, and the terms of sale.

c) If the holder of the right of first refusal does not file a right of first refusal claim within 30 days from the date of notifying the seller and the buyer of his desire to exercise such right.